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On Friday, Blackstone Capital Partners V, L.P − a private equity fund managed by The Blackstone Group LP (BX - Analyst Report) − announced that it has completed the acquisition of GCA Services Group from Nautic Partners, L.L.C. and other minority shareholders. GCA provides customized facility services in the U.S and Puerto Rico.

Blackstone anticipates this deal to offer a remarkable prospect of investing in one of the leading firms in the business services segment, where it has considerable proficiency. Further, GCA’s attractive market position and brisk growth offer an added incentive. Blackstone is eagerly looking forward to work with the exceptional management of GCA to carry on investing in the latter's growth.

Further, management of GCA felt that the deal is likely to stimulate GCA’s gradual growth. The deal reflects GCA’s strategy to grow dynamically, which will enhance the quality of service provided to the consumers. Moreover, Nautic Partners consider the Blackstone-GCA partnership to be an excellent collaboration, since Blackstone has a remarkable growth history and is further seeking avenues to develop.

In addition to financing the deal, Credit Suisse Group (CS - Snapshot Report) and Morgan Stanley (MS - Analyst Report) were the merger and acquisition advisors to Blackstone. The legal counsel of the deal was Simpson Thacher & Bartlett L.L.P.

Moreover, Robert W. Baird & Co. was the primary financial advisor to GCA, whereas Jefferies Group, Inc. was the co-advisor. The company’s legal counsel for the deal was Calfee, Halter & Griswold L.L.P.

Recent Acquisitions

In September, Blackstone made an agreement to buy Vivint Inc – a security provider that offers home automation and technology services – for a sum of about $2 billion. The deal is anticipated to conclude by the end of this year.

Later that month, Blackstone also reached an agreement with Capital Trust, Inc. – real estate finance company – to acquire the latter’s investment unit. Further, the company is set to purchase 18.2% stake in Capital Trust, giving it the corresponding managerial rights. Overall, Blackstone will shell-out approximately $30 million for this deal.

Our Viewpoint

Blackstone’s recent string of acquisitions reflects its strong liquidity. Additionally, these acquisitions have the capacity to fuel the company’s overall growth in the future.

Blackstone currently retains a Zacks #2 Rank, which translates into a short-term Buy rating.

 

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